Located offshore Western Australia in the Bonaparte Basin, Puffin is situated in the Ashmore Cartier Exploration Permit area of the Vulcan sub-basin on permit block AC/P22 and production license AC/L6. Situated in the waters of the Timor Sea ranging in depths of 230 to 338 feet (70 to 103 meters), the field produces light, sweet crude with an API of 43.8 degrees. About 435 miles (700 kilometers) west of Darwin, the Puffin field encompasses two sections, the Puffin North East and the Puffin South West locations.

While AED Oil wholly owned and operated the project for some years, the company welcomed a partner to help cover costs of development. In March 2008, AED entered into a joint venture agreement with Chinese oil company Sinopec. Sinopec now owns 60% of the project and serves as the operator, while AED holds the remaining 40% interest.

Puffin North East

The North East sector of the field is expected to contain more than 90 million barrels of oil. Puffin North East consists of the Puffin-1, -3 and -4 wells, which were drilled more than a decade ago. Additionally, this region includes the recently drilled horizontal wells Puffin-7 and -8, as well as the Puffin-12 well.

Drilled in 338 feet (103 meters) of water by the Stena Clyde semisub, the Puffin-7 well intersected oil in the Cretaceous sandstone formation. This well was completed as the field's first production well in May 2006.

Also drilled by the Stena Clyde, Puffin-8 spud in mid-February 2007 about 1,017 feet (310 meters) south of the P-7 well. The well encountered an oil-bearing column measuring 761 feet (232 meters) and was developed as the second production well on the field.

Intended to serve as a development well, Puffin-12 was drilled by the Wilcraft jackup. In January 2009, drilling was discontinued on the well due to insufficient thickness of the oil column encountered.

Puffin South West

Discovered by the Puffin-2 exploration well drilled in 1974 by ARCO, the South West area of the Puffin field was confirmed by the Puffin-5 well. This area also includes Puffin-9, -10 and -11 wells.

Drilled by the Stena Clyde semisubmersible, the Puffin-9 exploration well discovered two columns of oil. The well has been suspended for possible re-entry.

Drilled by the Wilcraft jackup in water 276 feet (84 meters) deep, the Puffin-10 well is the first production well drilled on the South West sector of the field.

At a water depth of 285 feet (87 meters), the Puffin-11 appraisal well was drilled by the Wilcraft jackup and encountered a 66-foot (20-meter) oil-bearing column. The well is intended to serve as a producer on this section of the field.

Field Development: Phase I

A field development plan for Puffin was submitted in February 2006, and the Australian government approved the plan in April 2006 by granting a production license. Field development on Puffin was divided into two phases. The first phase of development on Puffin encompassed the North East sector of the field, pulling production from the Puffin-7 and -8 wells. Field development called for subsea installation of flowlines, umbilicals and a subsea manifold, as well as an FPSO.

The two production wells connect to a subsea manifold, then production is sent through a APL buoy/swivel to the Front Puffin FPSO. Converted from the Gerrita tanker by Keppel Offshore, the Front Puffin FPSO has the capacity to process up to 40,000 bopd, as well as lift up to 12 MMcf/d (340,000 cm/d) of natural gas and store 740,000 barrels of oil. Vanguard Oil & Gas handled the FEED on the project, while Worley Parsons conducted the conversion engineering.

Moored in waters measuring 361 feet (110 meters), the vessel is held in place by an STP turret mooring riser system provided by Advanced Production and Loading. For offloading, crude oil is transported through a floating hose to a tandem-moored FSO.

Production commenced from the first phase of development on Oct. 6, 2007. While initial flow rates were expected to reach 18,000 bopd, production reached 27,000 bopd within two days.

Field Development: Phase II

The proposed second phase of development on Puffin involves the South West portion of the field, and may tie-in production from other fields in the area. Plans call for multiple subsea wells, as well as another FPSO.

In August 2007, an LOI was signed with MODEC for a fixed three-year lease with two one-year options on the Venture 1 FPSO. Previously stationed at the Elang/Kakatua field and the Skua field, the vessel is capable of producing 32,000 bopd and 6 MMcf/d (170,000 cm/d) of natural gas, as well as storing 750,000 barrels of oil. A converted tanker with an external turret that can be disconnected, the vessel will have to undergo only slight modifications to meet Puffin requirements. Additionally, the mooring, flowlines, umbilicals and risers from the Elang/Kakatua field will be redeployed on the South West Puffin development.

Production is expected from this phase of development in 2009 or 2010.

Talbot Tie-Back

Located on AC/RL1 retention license, the Talbot oil and gas field is 40 miles (65 kilometers) east of the Puffin field in waters ranging from 164 to 344 feet (50 to 105 meters) deep. The field was discovered by the Talbot-1 exploration well in 1989 and was delineated by Talbot-2 in 1990. With 49-degree API crude, both wells tested at rates upward of 5,000 bopd.

Current development plans call for the field to be tied-back to the Phase II facilities in 2009 or 2010; and additional Talbot appraisal and development drilling is slated for the future.

Other significant prospects in the permit block include Protea, which is northeast of Puffin-3, and Woodlea, which is east of Puffin-9. Additionally, with a relevantly new operator on board, field development plans may be expanded.

Activities

Sinopec Extends Front Puffin FPSO Contract to 2010

Date: Sep. 2008
Type: Operator Update

The board of Sea Production announced that East Puffin Pty. Ltd. declared a one-year option to extend the hire of Sea Production's Front PUffin FPSO from June 16, 2009 to June 15, 2010. The day rate for the one-year option is US $165,000 per day, plus a production tariff of $1/barrel produced.

AED & MODEC Sign Agreement for Second FPSO

Date: Aug. 2007
Type: Contract Award

AED Oil entered into a time charter agreement LOI with MODEC for the provision of an FPSO, the MODEC Venture 1. This key agreement, together with planned drilling and development will enable production from the Puffin South West region.

AED Acquires Talbot Oil Field

Date: Jun. 2007
Type: Acreage Acquisition

AED Oil completed the acquisition of Retention Lease AC/RL1, including the Talbot oil field. Oil Initially in Place has been calculated as 21.8 million stock tank barrels by an independent expert.

Keppel Clinches FPSO Contracts

Date: Oct. 2006
Type: Contract Award

Keppel Shipyard will carry out the conversion of a 112,000 dwt shuttle tanker, Front Puffin, into an FPSO facility for Frontline. Upon delivery, Front Puffin will be able to produce up to 40,000 barrels of oil per day and store up to 720,000 barrels of oil. It will be leased to AED Oil for the Puffin field in Bonaparte Basin in North Western Australia.

AED Submits Field Development Plan for Puffin Oil Field

Date: Jan. 2006
Type: Development Activity

AED Oil submitted a field development plan with the Northern Territory Department of Fisheries, Industry and Mines and applied for a Production License to begin oil production from the Puffin field.

Status History

Venture 1 FPSO

Producing - 2007 to -

In August 2007, an LOI was signed with MODEC for a fixed three-year lease with two one-year options on the Venture 1 FPSO. Previously stationed at the Elang/Kakatua field and the Skua field, the vessel is capable of producing 32,000 bopd and 6 MMcf/d (170,000 cm/d) of natural gas, as well as storing 750,000 barrels of oil. Additionally, the mooring, flowlines, umbilicals and risers from the Elang/Kakatua field will be redeployed on the South West Puffin development.

Talbot

Under Development - Aug 20, 2007 to -

Current development plans call for the field to be tied-back to the Phase II facilities in 2009 or 2010; and additional Talbot appraisal and development drilling is slated for the future.

Discovery (Appraised) - 1990 to 1990

Talbot was delineated by the Talbot-2 well in 1990. With 49-degree API crude, both wells (Talbot-1 and -2) tested at rates upward of 5,000 bopd.

Discovery (Drilled) - 1989 to 1989

Located on AC/RL1 retention license, the Talbot oil and gas field is 40 miles (65 kilometers) east of the Puffin field in waters ranging from 164 to 344 feet (50 to 105 meters) deep. The field was discovered by Santos with the Talbot-1 exploration well in 1989.

Puffin

Producing - Oct 06, 2007 to -

Production commenced from the first phase of development on Oct. 6, 2007. While initial flow rates were expected to reach 18,000 bopd, production reached 27,000 bopd within two days. The proposed second phase of development on Puffin involves the South West portion of the field, and may tie-in production from other fields in the area. Plans call for multiple subsea wells, as well as another FPSO.

Under Development - Feb 2006 to Oct 05, 2007

Field development on Puffin was divided into two phases. The first phase of development on Puffin encompassed the North East sector of the field, pulling production from the Puffin-7 and -8 wells. Field development called for subsea installation of flowlines, umbilicals and a subsea manifold, as well as an FPSO.

Appraisal Drilling - 2005 to Jan 2006

After drilling successful exploration and delineation wells on the license, AED submitted a field development plan to the Australian government.

Discovery (Drilled) - 1974 to 1974

ARCO discovered the South West area of the Puffin field with the Puffin-2 exploration well drilled in 1974.